Devon freeport edges closer

More decisions expected this week

The creation of the south west’s only freeport is set to take another step forward this week as one of the local authorities involved considers the full business case. 

At a special executive meeting of the South Hams District Council on Thursday councillors are expected to agree plans to fully participate in the new Plymouth and South Devon Freeport. 

Freeports are a special area where normal tax and customs rules do not apply. 

At a freeport, imports can enter with simplified customs documentation and without paying tariffs.  

The idea is to stimulate economic activity in certain areas and studies suggest they encourage imports by lowering duty and paperwork costs.  

Devon’s freeport is one of eight across the country announced by the chancellor in the March 2021 budget. 

More than 3,500 direct jobs are expected to be created, with an average wage of at least £13.92 per hour, five new businesses every year and £4 million a year in private investment in research and development.

Several public and private sector organisations have worked together to produce the full business case, including:

• Babcock International
• Princess Yachts
• Langage Energy Park Ltd
• Heart of the South West Local Enterprise Partnership (LEP)
• Universities of Plymouth and Exeter
• Ministry of Defence and port operators

Councillor Judy Pearce, leader of South Hams District Council, said: “The freeport is an excellent example of local authorities working together without borders to provide long term benefits for the whole region. 

“Together we aim to secure the freeport to provide more jobs, opportunities, skills where it is needed, foster innovation and capitalise on our strengths.

“Ensuring that current and future generations of the workforce can secure prosperous careers has never been as important.”  

In addition to agreeing full participation in the freeport, councillors at Thursday’s meeting are expected to approve the formation of a company limited by guarantee and for South Hams District Council to be a founder member, alongside Devon County Council and Plymouth City Council.

Three tax sites are being proposed. These are at South Yard in Devonport, Langage Energy Park and part of Sherford Employment Zone, providing a combined footprint of around 130 hectares for development.

Councillors will also be asked to approve borrowing up to £5 million from the Public Works Loan Board which is funded from the retained business rates income generated.

The council will also decide to match funding, provided by the government, to help develop the site at Langage, subject to advice from the chief financial officer.  

Total capital investment in the freeport is expected to reach £311 million. 

This is made up of £25 million in government seed capital grant and matched locally with £29 million. 

A further £10 million will be raised through Levelling Up grant income and the total private sector investment is expected to be almost £247 million.